All posts tagged mcdonald

As many fine musicians have pointed out, sometimes the way you say nothing can say a lot. And in the modern world of hyper-managed messaging from politicians, companies and celebrities, there’s plenty of nothing being said.

The same has long been true for the written responses reporters may get to questions submitted to a corporate spokesperson. A hypothetical question of “is it true that 34 members of your sales staff have been laid off today?” is just as likely to be answered with “we remain committed to excellence in serving our customers and investors” as it is with any response to the actual question.

Procter & Gamble, having just abruptly replaced its CEO, made time to discuss the matter with its investors this morning. Three minutes and fifty-seven seconds worth of time.

“I want to warn you, this will be a very short call,” said Chief Financial Officer Jon Moeller, who spoke briefly and took no questions.

He made three points: Bob McDonald decided to retire, the move doesn’t point to any bigger problem or financial issue, and the company doesn’t plan big strategic change. He then repeated those points and ended the call.

Procter & Gamble’s chairman Robert McDonald had a big day today, reporting quarterly results that beat his company’s own forecasts for the second quarter in a row. Profit doubled over the same period a year ago, and the company’s $10 billion restructuring plan is performing better and faster than expected, it said.

That’s good news for P&G but even better news for Mr McDonald, who was facing some serious heat from shareholders last year as the company faltered under his leadership. As the WSJ wrote in October:

Mr. McDonald, a P&G veteran now beginning his fourth year as CEO, is under pressure after lowering profit forecasts three times so far this year, as well as for failing to keep up with his rivals’ stock-price gains.

Speaking to investors in June, he acknowledged that the company’s performance has been subpar and laid out a new plan to focus on the 40 product-market combinations that account for the bulk of P&G’s profit.

Among the company’s most high-profile restive investors was hedge fund manager Bill Ackman, who met with Mr McDonald in September to declare his grievances:

William Ackman greeted him with a 75-page litany of complaints about his three years at the helm of the consumer-products giant—poor results, eroding investor confidence and sagging employee morale, according to several people familiar with the meeting.

Mr. Ackman, whose Pershing Square Capital Management LP had bought $1.8 billion worth of P&G stock in June and July, capped the roughly 90-minute get-together in downtown Manhattan, these people said, with a pitch aimed more at the two P&G board members in attendance, Boeing Co. Chief Executive James McNerney Jr. and American Express Co. CEO Kenneth Chenault: Strip Mr. McDonald of his board-chairman role and search for a new CEO.

Pressure from Mr Ackman and other shareholders was eased after better than expected results reported in late October; the company’s performance since gives Mr McDonald even more room to breath — and Mr Ackman, who invested $1.8 billion in P&G, the peace of mind to focus on other, more daunting battles in the months ahead. P&G shares rose 4% today. Read More »